Operation management.docx - The New Product Development ...

The New Product Development (NPD) Process
Buttermilk is what is left over after butter is produced using sour cream. During the beating of the milk,
the milk fat globule layers break, making the milk fat sour together. The coagulated milk fat then floats,
like spread, on the buttermilk. Phospholipids from these milk fat globule layers are touchy to oxidation,
making the buttermilk ruin rapidly. These days, hence, practically all buttermilk is created by adding lactic
acid bacteria to purified skimmed milk.
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Suitable N PD :
New Zealand is known for dairy industry which gives us an idea to go and research for a new product
development which does not exists in the local market. Buttermilk is a the one which is too difficult to
find in the market although many organized company’s presence. About 4.7% of total New Zealand
population belongs to India who prefer to have buttermilk with the meal. Even Local public prefer to
bake at home where they required buttermilk instead of which they must use powder. We are going to
produce buttermilk as it has potential market.
Before starting a production, it become mandatory to decide, what is the market of buttermilk. Weather
it requires to acquire new machine or can be produce by the exist assets. What amount of additional
money will be required to start the process. It is always preferable to have a rough ideas that how the
product is going to be perform in the market. In addition, Company will have to think about packaging
and varieties as well.
To produce buttermilk there is no additional ingredient which will required as company is already
producing ghee. Before ghee come in the final phase of production there would be liquid which can be
collected. This liquid is know as buttermilk.
To target a potential consumer organization has to think about how communication will be pass on to
them. What would be the way to hit in the market. Buttermilk is a product which is bit tough to find in
the market at this moment. So there is a hug advantage for Milkio to have it. Pricing would be important
aspect thus company must set affordable price so that everyone can at least by the product. Packaging
would be used from the current options by milkio only as considering the cost. As buttermilk is difficult
to find in the market in New zealand, Milkio has an advantage and can cover a good amount of market.